Kraken’s Parent Company Makes Tokenized Asset Move: Investors Granted This Right for the First Time in a $25 Billion Market
Kraken’s parent company, Payward, is expanding the scope of tokenized assets by granting tokenized stock (xStocks) holders a say in corporate governance for the first time through a partnership with Broadridge.
Payward, the parent organization of cryptocurrency exchange Kraken, is taking a revolutionary step in the world of tokenized stocks. Previously, xStocks investors—who only benefited from price movements and had no voting rights—will now be able to vote on company decisions through the assets they hold.
According to an announcement on Wednesday, Payward has formed a strategic partnership with digital asset infrastructure provider Broadridge. This collaboration will allow eligible investors to submit their proxy voting preferences through the system. xStocks, issued by Backed, has proven its strong market position by exceeding a total trading volume of $25,000,000,000 since last year.
The Era of Voting Rights in Tokenized Stocks
Payward Chief Commercial Officer Mark Greenberg stated that the ultimate goal of tokenization is not just to create fast capital markets, but to give investors all the rights that come with being part of a company. Last month, the company included shares from the Hong Kong stock exchange into the system through a partnership with GTN. Future plans include expanding this service to strategic markets such as the UK, Europe, and South Korea.
Traditional Finance Meets Blockchain
Currently available to investors outside the US and UK, this service is also on the radar of traditional finance giants. Major institutions like JPMorgan and Goldman Sachs are conducting serious work on moving securities onto the blockchain. Kraken’s move closes the gap between tokenized assets and traditional stocks while giving the crypto ecosystem a more institutional structure.
The digital infrastructure provided by Broadridge covers wallet management and custody services in addition to voting operations. This allows investors to not only invest in the price of an asset but also take an active role in the future of the company that asset represents.